Tesla CEO Elon Musk has refused to comply with a subpoena from the US Securities and Exchange Commission (SEC), citing objections to the location where he was scheduled to testify. The SEC had requested Musk’s testimony as part of an ongoing fact-finding investigation related to his takeover of Twitter last year. However, just two days before his scheduled appearance, Musk informed the SEC that he would not be attending and raised objections to San Francisco as the appropriate location for his testimony.
Musk’s refusal to comply with the subpoena came as a surprise to the SEC, as he had not previously voiced any objections. The agency filed a document stating, Musk attempted to justify his refusal to comply with the subpoena by raising, for the first time, several spurious objections, including an objection to San Francisco as an appropriate testimony location. The SEC is investigating whether any securities laws were violated in connection with Musk’s Twitter stock purchases and his statements and filings related to the company.
Elon Musk completed the acquisition of Twitter in October 2022, concluding a legal battle with the social media platform’s previous leadership. However, the SEC’s investigation focuses on activities that occurred before the takeover when Twitter was still a publicly traded company. The agency emphasized that it has not reached any conclusions regarding potential violations of federal securities laws.
According to the SEC, the investigation into Musk’s actions began in April 2022 when he initially signed a deal to acquire Twitter. However, he attempted to back out of the agreement, resulting in the company suing him to enforce the acquisition. The regulatory body is now examining whether any securities laws were breached during this period.
Neither Musk nor his company, Tesla, have issued a public statement regarding his refusal to comply with the SEC’s subpoena. Musk’s concern about the location of his testimony in San Francisco raises questions about his reasoning and potential implications for the ongoing investigation.
As of now, the SEC has not indicated its next steps following Musk’s refusal to testify. The agency’s investigation into Musk’s activity surrounding Twitter remains ongoing, and it will likely seek alternative ways to gather the necessary information. This development adds another layer of complexity to the already high-profile case and leaves observers curious about the potential consequences for Musk and Tesla moving forward.
